When renewing a policy, the same 3 fields as for policy creation are automatically calculated: Start Date, Expiry Date and Value
These values are still (but slightly differently) calculated based on:
Product (or insurance scheme)
Family composition (only influences the Value)
The Enrollment Date (influences both start/expiry dates and Value)
In case of renewal, the start date is computed to exact same way as for new policies, from the user-provided enrollment date (depending of product ‘cycles’,…) EXCEPT that no Administration Period is added to user-provided enrollment date.
The expiry date is calculated from the start date, exactly the same way as for new policies (based on product insurance period)
The Policy Value, for a renewed policy, is the sum of 2 (and not 3) ‘buckets’ (contributions and assembly) minus a discount. In other words, there is no ‘registration’ amount added to the policy
Value = Contributions + Assembly - Discount
Contributions and Assembly buckets are calculated the exact same way as for new policy values (with or without lump sum,…)
The Discount is however slightly different: the discount (percentage on the base amount) is only applied if the new enrollment date (not start date) is before the previous policy expired first day , minus the renewal discount period)
Example:
For a product with a renewal discount period of 1 month and a renewal discount of 10%. If the base policy value is 10.000 and the enrollment date is 20/09/2020. If the renewed (aka ‘previous’) policy expires on 28/10/2020, a discount of 10% will be applied since 20/09/2020 <= 29/09/2020.
29/09/2020 = 28/10/2020 + 1 day (first expired day) - 1 month (discount period)